2011 monetary policy projection adopted

Published: 22/12/2010

At its session today, the Council of the Croatian National Bank reviewed the macroeconomic outlook for Croatia in the following year, and adopted the monetary policy projection and the financial plan of the central bank for 2011.

By the Decision of the CNB Council, the rate at which the central bank pays the remuneration for the allocated kuna component of reserve requirements to banks is reduced from 0.75% to 0.25%. In this way, the remuneration rate is aligned with market trends, having regard to the fact that in the course of this year the weighted interest rate on overnight placements ranged between 0.39% and 2.86%, while interest rates on kuna corporate deposits on giro and current accounts ranged between 0.51% and 0.58%.

The CNB Council also approved the decisions of the supervisory boards of several banks on the appointments of chairpersons and members of the management boards. At BKS Bank d.d., Rijeka, Goran Rameša is reappointed as chairperson of the management board, and Christian Pettinger as member of the management board; at Karlovačka banka d.d., Karlovac, Sandi Šola is reappointed as chairperson of the management board, and Marijana Trpčić Reškovac as management board member; at Kreditna banka d.d., Zagreb, Mirjana Krile is appointed the new chairperson of the management board, and Stjepan Anić is appointed member of the management board; at Partner banka d.d., Zagreb, Petar Repušić is appointed member of the management board; at Zagrebačka banka d.d., Zagreb, Franjo Luković is reappointed as chairperson of the management board for the next term, and Sanja Rendulić, Daniela Roguljić Novak, Mario Agostini, Milivoj Goldštajn, Marko Remenar and Miljenko Živaljić are appointed members of the management board.

Since neither the measures so far undertaken by the Croatian National Bank to align the operations with the applicable regulations nor the negotiations with potential domestic and foreign investors with the aim to achieve the appropriate capital increase have led to the desired result, authorisation is withdrawn from Obrtnička štedna banka d.d., Zagreb, at today's session. This means that Obrtnička štedna banka is subject to compulsory winding-up proceedings. The financial institution has five branch offices and around forty employees. It was established in 2008 from the transformation of Obrtničko štedno-kreditna zadruga (co-operative). It operates with a loss, and the capital adequacy ratio, according to last months' data, stood at a mere 5.2% (the legal minimum being 12%, the average rate of the entire banking system about 19%), and the share in assets of the total banking sector, with the balance at the end of September, stood at only 0.03%.